Are People Against Bitcoin Spot ETFs? Public Feedback Rolls In as SEC Approval Looms

The cryptocurrency world is on edge as the Securities and Exchange Commission (SEC) prepares to decide on a spot Bitcoin ETF. While many are hopeful for approval, there are still concerns that need addressing.

This article will delve into the latest developments and insights from industry experts to provide a comprehensive overview of the current situation.

Understanding SEC’s Past Stance on Bitcoin ETFs

The SEC has previously turned down several Bitcoin ETF applications due to worries about market manipulation and Bitcoin’s volatility. They’ve also viewed Bitcoin ETFs as a new and vulnerable asset. However, recent moves by big players like Fidelity and VanEck to propose Bitcoin ETFs have stirred new hopes.

Unlike earlier proposals, these new ones are focused on physically-backed Bitcoin ETFs. This means investors could trade shares that closely follow Bitcoin’s price.

Also Read: SEC Approval for Spot Bitcoin ETFs Expected in JUST 2 Days, Hints Giant Investment Firm

Expert Views: An Array of Predictions

Many prominent analysts predicted and anticipated recent matters. However, recently, Bloomberg ETF analyst Eric Balchunas said that while it’s unlikely, there is still a 10% chance that the SEC could hand down the “rug pull of a decade.”

Balchunas thinks a full rejection this month is unlikely. Instead, he suggests the SEC might want more time for review, rather than a simple no. He shared this view in a talk with Cointelegraph.

Potential Legal Actions on the Horizon?

Balchunas claims this worry is the main reason he and colleague ETF analyst James Seyffart haven’t increased the odds past the 90% possibility of acceptance by January 10.

Eric explained that the amount of time and examination put in by the SEC and Bitcoin ETF Issues means it’s unlikely that a Bitcoin ETF would be rejected outright at the last moment. 

He later added that if the SEC issues a complete denial, fund issuers might follow in the footsteps of crypto asset manager Grayscale and launch a separate lawsuit against the regulators.

“People have spent too much money and tried too hard to give up now. So yeah, it would not be over. I don’t even think there’d be a cooling-off period this time. I think there’d be hell,”

Eric Balchunas

The Public Speaks Out

Two groups have recently given feedback to the SEC, urging caution on the Bitcoin ETF proposal by January 2. One argument made is that Bitcoin’s decentralized nature might attract regimes looking to bypass sanctions or exert more control over their citizens.

As we approach the SEC’s decision date, the cryptocurrency community is watching closely. The outcome could have significant implications for the future of digital assets.